and with a single issuer, maximum maturities, and minimum credit ratings. Credit Risk. To mitigate the risk that an issuer of an investment will not fulfill its obligation ... by a nationally recognized rating agency. Custodial Credit Risk. This is the risk ... December 31, Investment Type: Federal National Mortgage Association (Fannie Mae) ..................... Federal Home Loan Banks ................. Federal Home Loan Mortgage Corporation (FreddieMac) ............... Banker

the Company has only hedged interestraterisk with a third party, and retains uncollateralized credit risk as described below. The instruments use interestrates based upon ... party for the same notional amount to hedge the interestrate and credit risk ...Interestrate derivative contract Interestrate derivative contract Credit default swap index contract The Company's interestrate derivative contracts, credit default swap

48%, average interest expense on issued securities of 2.38%, average payment rate of 22.04%, and discount rates of 7.75% for the Seller RetainedInterest, 13.62% for the Class B and 25.35% for the Interest Only Strip. These discount rates represent the 24 NORDSTROM INC ... formula that considers both the current interestrate environment and credit spreads ... January 31, Class B Certificate Seller RetainedInterestInterest Only Strip Principal

commensurate with the risks involved). As a result of selling the interest in certain ... pertaining to retainedinterest The key economic assumptions used to determine the loss ... to the retainedinterest were as follows: